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Operating Profit

Profit is made when revenue exceeds costs.

If a project revenue exceeds project cost - it generates profit (or income).

Operating Profit - OP

can be expressed as

OP = Σ R - Σ C         (1)

where

OP = operating profit

R = project revenue

C = project cost

Operating Profit Percentage - OPP

can be expressed as

OP = 100 (Σ R - Σ C) / Σ R          (2)

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